A guide to your credit report

Simone is a young person who has just landed her first well-paying job. She wants to buy herself a car and is curious about what it takes to qualify. She has established a credit record and wants to know how her past behaviour will have an impact on her financial future. 

She has a few late account payments to her name and is keen to know just how bad her situation is. It would be ideal for her to access her credit report and to examine it thoroughly before applying for car finance.  

Without a doubt, lenders will look into her credit history before making a decision. She will want to put her best foot forward and if that means that she has to delay the process for a number of months until she improves her credit, then she should be willing to do this. 

Simone should know that by law she is entitled to one free credit report annually. This includes a detailed history of past borrowing behaviour and how one has repaid the debt. 

The information contained in this report is used to determine if you qualify for credit, your interest rate and how much credit you may qualify for. 

The information is represented in the form of a three-digit credit score, which provides a snapshot for inquiries by potential lenders. 

What a credit report includes:

• Name 
• Address 
• Phone number 
• ID number 
• Employer 
• Spouse’s name 

It also includes individual account information such as when it was opened, credit limit, balance, monthly payment, payment status and payment history. In addition to this, every inquiry is reflected in this report. 

Your credit report can be accessed through any of the numerous credit bureaus, such as XDS, Compuscan, TransUnion and Experian 

As a consumer, it’s important for you to address any wrong information you may come across by immediately contacting the credit bureau and creditors in question. 

Simone should use the information in her credit report as inspiration to improve on her score for the best possible application outcomes.